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Is There A Future For Digital Currency? | Joey Krug Interview

Yes, I think the main thing is that, overthe next few years, a few things will happen.

One is that I think there will be a successful,stable currency.

The main project in the space right now iscalled Maker.

And they're working on the line where mentionedthat it's collateralized with a few extra assets, and that it's topped up as needed.

And that's really important because you don'twant to have the volatility of a currency like Ether when you're trading on somethinglike Augur.

You don't want to be right about, say, theprice of Apple, but lose money because Ether collapsed 30% overnight.

So that's one big piece.

There's also projects like IPFS and Filecoin,which are working on de-centralized file systems.

So that's important for, if you're makinga decentralized application, you have all this user data.

It's pretty expensive to store it on Ethereum.

But if you can store it on their system, it'sa lot cheaper.

And then, the final piece is I think thisstuff will actually start to scale.

And so it's not infeasible at all to me thatwe'll see something like Ethereum doing 50,000 to 100,000 transactions per second in a fewyears, which is about very similar on par with what all of the exchanges on Wall Streetdo per day.

And so when you combine all of those things,you get a platform that's actually more feasible and ready to be built on.

It's like the world wide web if you advancedpast dial-up and got to DSL or cable.

And so I think once we reach that point, projectslike prediction market will start to take off because they actually are 10x better thanthe existing system once you have that scale.

So this is going to be one of these situations,again, very much like the world wide web where, initially, everybody gets on or a lot of peopleget on, they become very excited, then they realize that they're sitting there waitingvery slowly for the high resolution images from all these fantastic sites to be downloaded.

Google wins because it has a very simple interface.

It doesn't take any time to load, but ultimatelywins because of the virtue of the algorithm and the strength of the search capabilityrelative to the display ads that you might have seen from a category search like Yahoo.

Right.

Ultimately, the application is what becomesimportant once the restrictions on bandwidth are removed.

Yeah.

Basically, it's currently like dial-up.

And so when the average consumer goes to somethinglike Ethereum and wants to see what it's all about, you see a lot of people make fun ofit or think of it as a toy.

And that's kind of like what the internetwas in the very early years.

But over the course of the next few yearsas this stuff matures and scales, it actually gets really powerful.

Is There A Future For Digital Currency? | Joey Krug Interview

Joey Krug is one of the most exciting young developers in the cryptocurrency space, as the founder of online predictions market Augur, which is the one of the first major applications on Ethereum. Joey sets out his vision for the progression of digital currencies, building for the Blockchain and where the future opportunities will emerge, as well as how millennials will view the next generation of banks.

In this clip Joey Krug talks about the future for digital currency including scaling and application.